Brands are being urged to help Gen Z and Millennial women navigate the painful swing between “girls just wanna have fun” and “girls just wanna have funds” with many not having the cash for serious saving yet wanting a rainy day fund.
So says a new report, “The F Word, The New Money Mindset of Gen Z and Millennial Women” by insights consultancy Think Stylist, which reveals that nearly half of women in the UK aged 25 to 45 (46%) spend their money on bills, leaving no money for fun.
It shows that women are suffering from a ‘joy deficit’ as they are forced to cut down or cut out the things they love, such as pastimes and hobbies (38%), as the majority (60%) have less than £200 a month to spend on joy after bills have been paid and 23% have less than £50.
Most (78%) say they are now “selective spenders”, but a key pandemic legacy for these women is a heightened YOLO (you only live once) mindset, creating a tension of wanting to throw caution to the wind yet feeling more cautious about money.
This mindset has created a cohort of “seesaw spenders”, who are flipping between making food at home (a third have started prepping lunchboxes and 58% have started eating in rather than out) and spending on experiential fun, which is prioritised by over a third (35%) of UK women 25 to 45.
Head of Think Stylist Susan Riley said: “With costs up, living standards down and wages stagnant, money is weighing more heavily than ever on the minds of Millennial and Gen Z women, with nearly 40% citing it as their biggest challenge.
“With a decrease in ‘me money’ many women are paying an emotional price to try and stay in the black as they are caught between the urge to live for today and the desire to save for tomorrow.
The Think Stylist research discovered that young women tend to adopt eight distinct spending styles:
Budget & Blowout: Swinging continuously between careful budgeting and ‘what the hell’ blowouts, this cohort like to rate themselves highly for money management skills and dislike getting into debt.
Cautious Consumers: Ultra-mindful consumers who protect their incomings and restrict their outgoings. They likes to align financial security with good mental health and dislike buying things they know they can’t afford.
Post-Purchase Guilters: This group experience regret and remorse from the moment they’re handed the receipt. They actually feel frustrated with their finances and do not find saving money easy.
Value Seekers: With this cohort it is not about what they have got; it’s about how little they got it for. They like to excel at managing everyday expenses and avoid more complex financial strategies
Selfless Spenders: Unashamedly altruistic in their buying habits, this group loves to open their wallets. They also likes to feel content with their financial situation and dislike seeking professional financial advice
On-the-spotters: Their tendency to make impulse buys overrides this cohort’s ability to do any serious saving, even though that’s what they’d like to do. They like to prioritise buying quality and investment pieces although they do not feel confident about their finances in old age.
Treat Brainers: Going all out on the things they love, this group are empowered spenders who indulge themselves without feeling any guilt. They like to not feel frustrated by their finances and dislike making cutbacks.
Serial Returners: This cohort are caught up in the process of transactional shopping while rarely benefitting from the end result. They feel anxious about money and don’t feel financially independent.
The report findings show that Gen Z and Millennial women are looking for brands to reignite the spark of joy with partnerships and clever collaborations to provide more bang for their buck. There are also huge opportunities for brands that can help women navigate the financial landscape.
Riley added: “Women aged 25 to 45 are yearning for someone to work out what’s important to them, make tailored recommendations and understand the emotional weight of their financial choices.
“There is a clear role for financial institutions, but the onus isn’t all on them – any brand women trust could build love by providing access to financial literacy in their sphere. Currently they don’t feel anyone out there is talking their language.
“Investing is their key desire (51% state it as the money skill they want the most) so helping them to do that will make you their ally and a customer for life.”
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